HONG KONG , China -LRB- CNN -RRB- -- In the decade since the 1997 handover of Hong Kong to China , local movie-makers have faced daunting changes in the industry . A trend of fewer films being produced each year in Hong Kong at the time of the handover has continued into the 21st century .

Stephen Chow 's `` Shaolin Soccer '' is one of Hong Kong 's all-time top-grossing films .

People in Hong Kong 's industry point to several causes for the comparatively leaner times : a lack of opportunities for new acting talent , inadequate training and schooling for people who produce movies and changing tastes within the Hong Kong public .

At the same time , local film-makers have had to refocus their cameras for a new audience : mainland China .

`` The Hong Kong film industry came to a rude awakening -LSB- in the late 1990s -RSB- that the world was changing faster than it was in the age of new delivery systems for home entertainment and the Internet , '' says Bede Cheng , a local film archivist and curator . `` Unfortunately , it seemed to be blinded by the ` golden age ' of the '80s , where any film could easily rack in over $ 1.3 million . ''

The box office numbers are sobering . In the early 1990s , Hong Kong released around 200 local features a year . By 1997 , that number dropped to 85 films grossing $ 69 million , according to the Hong Kong , Kowloon and New Territories Motion Picture Industry Association -LRB- MPIA -RRB- .

By 2006 , those figures slumped to 51 films grossing $ 37 million . Ten years ago , the top 10 grossing films accounted for 47 percent of the total box-office return ; today , the portion is 58 percent .

`` 1997 , unfortunately , coincides with the beginning of the collapse of the local film industry -- a well-documented fact , '' says screenwriter Jimmy Ngai . `` On the other hand , it also commenced the opening up of the mainland market .

`` The result is that the industry has grown more and more accustomed to looking north for both investment and box return -- nothing political , but more of a survival instinct . What needs not to be spelt out for film-makers venturing north is that one plays according to what goes with the territory . ''

The new Chinese market has translated into an emphasis in contrasts of Hong Kong-made films , says film archivist Cheng .

`` Today production is down , with many majors like Chinastar and Golden Harvest scaling back , '' he says . `` Most films are high-end productions with big stars , or low-end made with a shoestring budget for an easier return .

`` The number of screens is also down , with the consolidation of more multiplexes , usually owned or partly owned by distributors , which already have a steady supply of foreign films to fill the screens . Some once video distributors like Mei Ah and Universe have gone into production as a way to keep the pipeline flowing . ''

In 2006 , Hong Kong closed five small cinemas and re-opened one multiplex . Gary Mak , director of Broadway Cinematheque -- Hong Kong 's last-remaining alternative-screening venue -- remains optimistic about more adventurous programming and distribution . But Mak points to a shortage of creativity in the local industry .

`` No talents , no formal training , in most areas such as script-writing , directing , acting , etc , '' he says . `` Even the independent scene still needs more real talents -- or at least , real producers to pull together a really good project . ''

Tim Youngs , Hong Kong consultant for Italy 's Far East Film Festival , says changing tastes among Hong Kong movie-goers has also affected the industry .

`` Audiences have become increasingly dismissive of local movies , often referring to them as poor quality , and there are much fewer paying cinemagoers these days .

`` So the hometown audience shows less support for local movies , whether by not seeing local films or opting for piracy , while the declining number of films means less opportunities for film-makers , fewer chances to try out new things , and damage to confidence . ''

Elizabeth Kerr , film critic and curator formerly based in Seoul , South Korea , agrees with Youngs ' assessment .

`` For all the risk-taking businessmen out there -LSB- in Hong Kong -RSB- , no one is willing to put their money where their mouth is and throw in some support .

`` The industry for the most part suffers from the cleave between that fluff -- which makes money -- and the more adult film-making of the smaller studios , distributors and indies . ''

How is South Korea 's film industry different from its Hong Kong counterpart ? `` The drive to attain world adoration , '' Kerr says . `` Koreans truly believe they 're making great art all the time . South Korea launched an active campaign on all levels -- corporate , government , education -- to train and cultivate a modern film industry . ''

Still , Kerr sees reason for optimism . Films that best retain a Hong Kong style , Kerr maintains , likely carry `` Category III '' -LRB- under 18 not allowed -RRB- ratings : Movies that are `` grown up and smart , '' she says .

`` Even if the films do n't work , someone tried . ''

In the end , it may be culture that poses one of the greatest challenges for Hong Kong 's movie industry .

`` Around 1997 , like lots of Hong Kong people , I kind of lost myself , '' says independent film-maker Chan Wing-chiu . `` The film industry was already almost dead in the '90s . Why work for a sunset industry ? ''

Chan 's own first feature in 2005 , `` A Side , B Side , Sea Side , '' includes a scene with a gaggle of girls on Hong Kong 's Cheung Chau island who are unable to communicate in Chinese with an Australian man speaking fluent Mandarin . The two parties end up conversing in English .

`` That 's me , '' says Chan , referring to the girls . `` I speak English better than Putonghua -LSB- China 's official common language , also known as Mandarin -RSB- . Many Chinese say that now that Hong Kong is part of China , Hong Kong people must learn Putonghua . I disagree . In Hong Kong we all speak Cantonese . Hong Kong already has a bad reputation for Putonghua , but I do n't feel ashamed . I 'm proud to have grown up during the transition between 1997 and SAR .

`` Why do we have so many problems with China ? Because our language , our culture , our values , our way of thinking are different . So we are not good at speaking Putonghua . Even in the cinema , we see Western movies , Japanese movies , Korean movies ... but not many Chinese movies . ''

Adds independent director Yan-yan Mak : `` We are monsters . China says : ` You are not Chinese . ' Gweilos -LSB- Hong Kong slang for Caucasians -RSB- say : ` You are Chinese . ' After 1997 , we lost the confidence to be Hong Kong people . '' E-mail to a friend

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Hong Kong film production has dropped almost 75 percent since early 1990s

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Mainland investment and market influences quality of Hong Kong films

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Problems include few opportunities for new talents and little audience support